Blackstone looks to acquire Brixton

Blackstone Group is reportedly interested in acquiring Brixton, the biggest owner of warehouses in Britain. Other bidders for the company include FTSE-250 industrial property group Segro.

An increase in vacancy rates has caused problems for Brixton, as the beleaguered company is said to be close to breaching its banking covenants. Tim Wheeler, the business' chief executive, had to step down earlier this year.

The new CEO Peter Dawson has attempted to raise capital by selling properties. Brixton has sold four warehouses this month for £70m.

But the company has still shown a loss of £768.8m this year compared with a profit of £58.2m in 2007, bringing its share price to a record low of 14.25 pence in March. The talk of a potential takeover however, has caused the share price to rise to 68.75 pence as 26 May.

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